The Brazilian playmaker has been in talks for weeks over the terms of ending his deal a year early, in order to join Vasco da Gama.
Coutinho has spent the last 12 months back in his homeland with his boyhood club on a loan agreement which expired on Monday.
The imminent termination of his Villa contract, which will see him receive a portion of his £125,000-a-week salary, will now allow him to sign with Vasco permanently, officially bringing an end to his three-and-a-half year association with the Premier League club.
Coutinho, once the second most expensive player in the world when he moved from Liverpool to Barcelona for £142million, became one of the most high-profile signings in Villa’s history when he initially joined on loan from the Catalan club in January, 2022.
The deal was then made permanent in May of that year for £17m with Coutinho signing a four-year contract.
But he went on to start just seven more Premier League matches, scoring only one goal, as his time in the Midlands became disrupted by poor form and chronic muscle injuries.
His final appearance for Villa came in August 2023 before he moved to Qatari League club Al Duhail on loan, later joining Vasco in the summer of 2024.
Villa, who are working to reduce their wage bill to revenue ratio to help comply with Uefa’s cost control measures, had been keen to offload his salary permanently this summer.